Japanese chipmaker Renesas Electronics Corp announced on Thursday that it will set up a design centre with India’s Tata Elxsi Ltd to jointly develop electric vehicle (EV) technology as appetite for the EV market continues to grow.
The centre in Bangalore will be a new hub for the two companies to develop crucial EV systems, such as battery management systems and motor control units.
In a statement announcing the move, Renesas Electronics said that it will strive to provide practical solutions sought by the EV market, and hopes to eventually spread the rewards of the development partnership across the globe.
Microchips are a key component in car manufacturing but automakers around the world have been hamstrung by limited supplies due to semiconductor production cuts during the pandemic.
Tata Keen to Rev Up Its EVs
In February, Tata Elxsi’s parent company, Tata Motors, which also owns the Jaguar and Land Rover brands, reported a fourth consecutive quarterly loss, weighed down by higher commodity prices and the global semiconductor shortage.
The Mumbai-headquartered firm reported a net loss of 15.2 billion rupees ($203 million) in the three months to December 31, compared with a net profit of 29.1 billion rupees a year earlier.
In November, the Tata group was reported to be in talks to acquire the battery materials business of UK-based Johnson Matthey in a transaction to rev up the conglomerate’s push into the fast-growing electric vehicle market, Mint reported, citing two unidentified officials aware of the plan.
Tata Chemicals was said to be a frontrunner in the race to buy the business from Johnson Matthey, the report said, adding that it may be valued at about $700 million.
• Reuters with additional editing by Jim Pollard
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